Andhra Pradesh Eyes Strategic Role in Global Nuclear Economy, Says Nara Lokesh

NEW DELHI:
Andhra Pradesh Minister for Education, IT & Electronics, Nara Lokesh, on Monday said Andhra Pradesh is positioning itself as a trusted long-term partner in the emerging global nuclear economy, as rising AI-driven electricity demand and industrial decarbonisation reshape global energy strategies.

Speaking at the “U.S. Executive Nuclear Mission to India” summit in New Delhi, jointly organised by the Nuclear Energy Institute (NEI) and the US-India Strategic Partnership Forum (USISPF), Lokesh said Andhra Pradesh sees significant opportunities across nuclear manufacturing, engineering ecosystems, industrial supply chains, advanced energy infrastructure, and next-generation clean technology partnerships.

The event brought together senior U.S. nuclear industry executives, policymakers, and strategic stakeholders. Nivedita Mehra, Managing Director of USISPF, welcomed delegates, while Maria Korsnick, President & CEO of NEI, participated in the summit.

“Global energy systems are entering a structural transition driven by AI compute growth, industrial electrification, energy security concerns, and decarbonisation commitments. Andhra Pradesh intends to play a meaningful role in that transition,” Lokesh said.

Nuclear Energy Emerging as Strategic Industrial Opportunity
Lokesh said advanced nuclear technologies such as Small Modular Reactors (SMRs) and next-generation reactor systems are creating opportunities far beyond electricity generation, particularly in modular manufacturing, precision engineering, distributed supply chains, and industrial-scale deployment ecosystems.

He said India’s engineering talent, manufacturing competitiveness, and industrial scale, combined with Andhra Pradesh’s ports, logistics connectivity, industrial corridors, and execution capabilities, create a compelling proposition for global partnerships.

“Andhra Pradesh is approaching nuclear energy not merely as a power sector opportunity, but as a long-term industrial ecosystem opportunity,” he said.

AP Building Integrated Energy & Industrial Infrastructure
Lokesh said Andhra Pradesh is simultaneously building industrial corridors, electronics manufacturing clusters, renewable energy infrastructure, and large-scale digital infrastructure ecosystems.

He noted that Visakhapatnam is being positioned as a major AI and data center hub, with nearly 6 GW of data center capacity expected to come up over the coming years.

“These next-generation industrial ecosystems require massive volumes of reliable, affordable, round-the-clock clean power. Energy planning is therefore becoming central to economic planning,” he said.

Lokesh reiterated that Andhra Pradesh’s Integrated Clean Energy Policy targets nearly ₹10 lakh crore in investments across renewables, storage, green hydrogen, transmission infrastructure, manufacturing ecosystems, and grid modernization.

AI Revolution Driving Structural Power Demand
Highlighting the impact of AI-led infrastructure expansion, Lokesh said global electricity demand is entering a new phase.

“A single hyperscale AI-native data center can consume electricity comparable to that of a mid-sized city. When you combine AI infrastructure, semiconductor manufacturing, electronics clusters, and industrial corridors, the scale of future power demand becomes enormous,” he said.

He added that Andhra Pradesh is already witnessing strong interest from global firms planning gigawatt-scale AI-native data centers in Visakhapatnam.

Andhra Pradesh Looking to Build Full-Stack Manufacturing Ecosystems
Lokesh said the state’s strategy extends beyond attracting standalone projects.

“Our objective is not merely to host data centers. We want to build the manufacturing ecosystems around them,” he said.

He outlined Andhra Pradesh’s focus areas, including cooling systems manufacturing, power electronics ecosystems, transformers, battery storage supply chains, semiconductor-linked industries, and advanced workforce development.

The state is also investing in skilling ecosystems to create a pipeline of AI infrastructure technicians, energy engineers, and advanced manufacturing talent.

“Historically, regions that achieved industrial leadership built integrated value chains rather than isolated projects. Andhra Pradesh intends to approach AI and clean energy opportunities in exactly that manner,” he said.

AP Sees Opportunity Across Nuclear Supply Chains
Lokesh said Andhra Pradesh intends to participate across the broader nuclear value chain, including precision manufacturing, specialized fabrication, advanced engineering, industrial construction standards, export-oriented supply chains, and workforce development.

“The real long-term opportunity lies not only in owning nuclear assets, but in becoming part of the global nuclear industrial ecosystem,” he said.

He added that Andhra Pradesh is prepared to collaborate with trusted international partners across technology partnerships, engineering ecosystems, industrial standards, skilling, research collaborations, and advanced manufacturing.

Nuclear Power Critical for AI Era Infrastructure
Lokesh said the economics of long-duration industrial infrastructure increasingly favour reliable baseload clean power.

“Nuclear energy offers predictable long-term Levelized Cost of Energy (LCOE), complements renewable energy, and reduces dependence on volatile fossil fuel markets. This predictability matters enormously for sectors such as semiconductors, hyperscale data centers, and advanced manufacturing,” he said.

He noted that modern nuclear technologies are seeing rapid advances in passive safety systems, modular designs, automation, digital monitoring, and operational resilience.

“The future of AI will ultimately depend on the future of energy,” Lokesh said, adding that governments, technology firms, manufacturers, and investors will increasingly need to collaborate on long-term clean energy infrastructure.

India-US Nuclear Cooperation Can Shape Next Growth Phase
Lokesh said India-U.S. cooperation has already deepened significantly across technology, semiconductors, defense, and clean energy, and nuclear energy could emerge as the next major pillar of the strategic partnership.

“This can evolve into a broader industrial, manufacturing, innovation, and infrastructure partnership that helps power the next phase of the global economy,” he said.

Lokesh said Andhra Pradesh is looking to work with long-term global partners to accelerate industrial growth, advanced manufacturing, energy security, and high-quality job creation.